Thu, 11 Aug 2022

Indonesia posts inflation at 4.35 percent in June

Xinhua
02 Jul 2022, 02:05 GMT+10

JAKARTA, July 1 (Xinhua) -- Statistics Indonesia (BPS) on Friday announced the inflation stood at 4.35 percent year on year in June, the highest in five years, exceeding the upper limit of Bank Indonesia's target range of 4 percent.

The June inflation rate was compared to 3.35 percent in May. Head of BPS Margo Yuwono said monthly inflation in June was 0.61 percent month to month, up from May's 0.40 percent.

"This is the highest year-on-year figure since June 2017, when it was 4.37 percent year on year," Yuwono told a press conference.

BPS also announced the country's core inflation was at 2.63 percent year on year and 0.19 percent month to month in June.

Governor of Bank Indonesia Perry Warjiyo said that fundamentally the core inflation rate was still low, so the central bank could maintain its benchmark interest rate at a low level.

"The core inflation is relatively low so it can provide flexibility for us not to rush to raise interest rates," said Warjiyo at a meeting with the House of Representatives.

On the same occasion, Finance Minister Sri Mulyani Indrawati said that the inflation rate by the end of 2022 would reach 4.5 percent year on year due to the surge in global commodity prices amid supply chain disruptions and the conflict in Ukraine.

However, the role of the government in subsidizing energy and some basic commodities will support maintaining people's purchasing power and controlling the inflation rate, Indrawati added.

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